Germany 40 (DE40) - 4H Analysis
Technical Overview:
The price broke below an ascending trendline, signaling a potential trend reversal or deeper correction.
Currently, it's retesting the broken trendline, which could act as resistance.
A drop towards the 21,709 support level is possible if sellers maintain control.
Key Levels to Watch:
Resistance: 22,719 (Current price area - retest zone)
Support: 21,709 (Major level to the downside)
Indicators:
RSI (14) is at 50.46, slightly below the neutral zone, indicating weak momentum.
If RSI continues to drop below 40, it would confirm further downside pressure.
Potential Scenarios:
Bearish Continuation (Higher Probability)
If price rejects the retest of the broken trendline, expect a drop toward 21,709.
RSI moving lower would confirm this move.
Bullish Rebound (Lower Probability)
If price reclaims the broken trendline and closes above 22,800, then buyers could push it higher.
Trading Plan:
Short below 22,719 with a target of 21,709.
Stop loss above 22,900 (invalidates bearish thesis).
Buy only if price breaks back above 22,800 with RSI confirming strength.
Technical Overview:
The price broke below an ascending trendline, signaling a potential trend reversal or deeper correction.
Currently, it's retesting the broken trendline, which could act as resistance.
A drop towards the 21,709 support level is possible if sellers maintain control.
Key Levels to Watch:
Resistance: 22,719 (Current price area - retest zone)
Support: 21,709 (Major level to the downside)
Indicators:
RSI (14) is at 50.46, slightly below the neutral zone, indicating weak momentum.
If RSI continues to drop below 40, it would confirm further downside pressure.
Potential Scenarios:
Bearish Continuation (Higher Probability)
If price rejects the retest of the broken trendline, expect a drop toward 21,709.
RSI moving lower would confirm this move.
Bullish Rebound (Lower Probability)
If price reclaims the broken trendline and closes above 22,800, then buyers could push it higher.
Trading Plan:
Short below 22,719 with a target of 21,709.
Stop loss above 22,900 (invalidates bearish thesis).
Buy only if price breaks back above 22,800 with RSI confirming strength.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.